Revenue Analysis
Total and Operating Revenue: TNL’s total revenue has shown slight fluctuations over the past years, peaking at $986 million in Q3 2023 before slightly decreasing to $916 million by Q1 2024. Operating Revenue followed a similar trend with a peak in Q3 2023.
Gross Profit: Gross profit has decreased from $914 million in Q3 2023 to $849 million in Q1 2024, indicating a reduced profitability margin over the periods observed.
Cost Management
Cost of Revenue: The cost of revenue has trended partially upward, indicating increased costs associated with the revenue generation from $55 million in Q1 2023 to $67 million in Q1 2024.
Operating Expense: Operating expenses have generally increased over the period, aligning with the trend in total expenses, which rose from $739 million in Q1 2023 to $766 million in Q1 2024.
Total Expenses: An overall upward trend despite fluctuations indicates potentially escalading operational costs.
Profitability Analysis
EBITDA: Earnings before interest, taxes, depreciation, and amortization (EBITDA) has shown a decline from $242 million in Q3 2023 to $184 million by Q1 2024.
Operating Income: Similarly, Operating Income decreased from $209 million in Q3 2023 to $150 million by Q1 2024.
Pretax Income: There’s been a declining trend in Pretax Income, moving from $148 million in Q3 2023 to $92 million by Q1 2024.
Net Income: Net Income has decreased significantly from $110 million in Q3 2023 to $66 million in Q1 2024, aligning with the downward profitability trend.
Cash Flow Indicators
Reconciled Depreciation: Reconciled Depreciation remained relatively steady, indicating consistent capital expenditure amortization.
Interest Expense: Has slightly decreased over the period, from $64 million in Q1 2023 to $64 million in Q1 2024, possibly reflecting reduced debt load or improved interest rates.
Taxation
Tax Rate For Calcs: The effective tax rate has fluctuated, starting at 0.255 in Q1 2023, rising to 0.291 by mid 2023, and then adjusting to 0.285 by Q1 2024.
Tax Provision: Tax provisions rose significantly, especially noticeable in the increase from $22 million in Q1 2023 to $26 million in Q1 2024.
Tax Effect of Unusual Items: There have been significant tax impacts due to unusual items, particularly between $0 and -$3.15 million over the period.
Shareholder Metrics
Diluted and Basic EPS: Both diluted and basic earnings per share (EPS) have shown a declining trend, with diluted EPS down from $1.49 in Q3 2023 to $0.92 in Q1 2024.
Average Shares: The average shares outstanding have decreased, with diluted average shares reducing from 78.3 million in Q1 2023 to 72 million in Q1 2024.
Net Income Available to Common Stockholders: This has followed the same downward pattern as net income, mirroring the overall profitability trend.
Conclusion
The analysis reveals a downward trend in TNL’s profitability despite relatively stable revenue streams. Cost management and perhaps shrinking margins are areas of concern. Given these insights, a recommendation for TNL would be to focus on efficiency improvements, and cost control measures, and possibly reconsider financial and tax strategies.